Storage Vault Ltd., which operates three self-storage facilities in Scotland, intends to develop seven new locations across the region. The projects will incorporate the company’s model of flexible workspace, offering a mix of storage, office and studio space. The first is slated for Scotland Street in Glasgow, which is already underway and expected to be complete in January, according to a press release.
Other Scottish cities tagged for sites are Bishopbriggs, East Kilbride, Edinburgh, Hamilton, Maryhill and Polmadie. The projects will more than double Storage Vault’s footprint.
The company announced its expansion plan after securing £5 million in funding from HSBC Bank plc. The financing was allocated from a £10 billion fund setup to support small and mid-sized enterprises (SMEs) in the United Kingdom. Of that total, £500 million was designated to support Scottish firms, the release stated.
“We’ve seen the market for self-storage grow by 10 to 15 percent annually in the last five years, presenting real opportunities for ambitious businesses,” said Scott Wilson, relationship director for HSBC in Scotland. “Securing the right commercial property is becoming more competitive, particularly in the central belt, and Storage Vault helps address the gap with an innovative solution, which we are more than happy to support.”
Storage Vault launched behind a £50 million investment from Scottish Capital Partners Ltd., a private investment firm led by entrepreneur John McGlynn, Storage Vault’s founder and chairman. Scottish Capital’s initial plan was to develop 10 workspace sites. Its first facility, a 180,000-square-foot property in Paisley, opened in 2015. Its second site, developed in the Glasgow suburb of Cambuslang, is built on 7.5 acres.
Storage Vault properties offer purpose-built, drive-up storage units in varying sizes up to 200 square feet. Locations include 24-hour access, board and meeting rooms, furnished offices, kitchens, phone, Internet, reception services, postal facilities, security measures, and parking.
“The funding deal provided by HSBC adds more firepower to our investment pot and supports our ambition to grow beyond the original plan of 10 sites from our equity investment,” said Anthony McAteer, managing director of Storage Vault. “Scotland has a rich landscape of startups and SMEs, and by providing new ultra-flexible storage and workspaces, we are doing a small part to make it easier for someone to make the leap to start a business or grow an existing one. We’re excited to be working with HSBC and looking forward to the opening of the many sites we have in the planning and development stages.”
HSBC offers a range of banking services to about 17 million customers in the U.K. A subsidiary of HSBC Holdings plc, it employs about 43,000 people. Headquartered in London, HSBC Holdings has 3,900 offices in 67 countries and territories. It has assets of more than $2.5 trillion.
McGlynn has launched more than 50 business ventures in the past 20 years. In addition to Scottish Capital and Storage Vault, he’s the founder of Storage Investments, a commercial landlord that owns a drive-up self-storage chain in the U.K. In 2014, he sold several car-park sites to focus on commercial investment properties. In all, Storage Vault principals have more than 15 years of experience in commercial-property ventures, including self-storage.